Lord Mandelson warns HS2 could be 'expensive mistake'

Lord Mandelson has delivered a damning blow to the multi-billion High-Speed 2
project, saying he now believes the high speed rail line could prove “an
expensive mistake.”

Lord Mandelson has admitted HS2 could now be an "expensive mistake"Photo: Dan Kitwood/GETTY

By Claire Carter

7:30AM BST 03 Jul 2013

The u-turn by the former business secretary, who previously backed the plans, has raised concerns about HS2 and its escalating costs.

In 2010 Labour backed HS2, a high speed rail line linking London with the north of England, billed as a boost to the economy.

But now, Lord Mandelson has admitted he has changed his mind.

Writing in the Financial Times, Lord Mandelson said Labour’s backing for HS2 was partly based on hopes of the country emerging from the financial crisis and the impending elections rather than the financial burden or the impact on areas around the new line.

He wrote: "There are no simple options when it comes to transport – but I now fear HS2 could be an expensive mistake."

He wrote: “In addition to the projected cost, we gave insufficient attention to the massive disruption to many people’s lives construction would bring. Why? Not because we were indifferent but because we believed the national interest required such bold commitment to modernisation.”

101The cost of HS2 has just risen by a quarter from £33 billion to £42.6 billion, raising fears about further increases and where funding will come from. Cheryl Gillan MP previously said she thought the high speed line was “30 years out of date.”

In his comments Lord Mandelson issues a stark warning to politicians about the danger of “binding themselves irrevocably to HS2” which he said could end up damaging the very people it was intended to help. He said at the time decisions were based on “speculative figures” and raises questions about whether the line will remove the north-south divide.

He added: “There are plenty of important infrastructure needs to which a future Labour government will, rightly, want to commit itself. It is therefore reasonable that those who previously supported the project should not offer it an open cheque and should, instead, insist on keeping their options open.”

Ed Miliband, Ed Balls and Lord Adonis are all said to still publicly back HS2. Shadow transport secretary Maria Eagle recently branded the project “essential” for Britain’s railways to cope with rising demand.

But the latest admission by Lord Mandelson has added to the growing doubts over HS2, which has shattered the political consensus on the project.

Work on HS2, which will link London to Birmingham by 2026, is due to begin in 2017. Connections to Manchester and Leeds are planned to be completed by 2032.

Ministers have said it will be a boost to the economy, but Lord Mandelson said ambitious claims were made at the time about the potential of HS2, justifying the billions of pounds to be spent on it.

He said these assumptions have still not been proved, and instead alternatives such as making improvements to the east and west coast lines, were not considered.

He added: “Probably the most glaring gap in our analysis were the alternative ways of spending the £30bn cost, appraised against the stated objectives of HS2.”

Lord Mandelson’s comments follow those of former Labour chancellor Alistair Darling who said he feared the project would use money needed in other areas. Conservative MPs also signed a motion last month to prevent a second reading of the Bill about HS2.